Which of the following is a drawback of trading in a global market?

Increased competition is indeed a significant drawback of trading in a global market. When businesses expand their reach internationally, they often encounter competitors from various countries, all vying for the same customers. This heightened competition can put pressure on companies to lower prices, invest more in marketing, and innovate continuously to maintain their market share. As a result, smaller businesses may find it challenging to compete against larger multinational corporations that can leverage economies of scale and resources effectively.

Moreover, increased competition can lead to market saturation where numerous firms are fighting for limited consumer demand, leading to reduced profit margins. Companies may also need to adapt their products or services to cater to diverse consumer preferences across different markets, adding complexity to their operations.

The other options highlight potential advantages, such as job opportunities and reduced costs, which do not reflect the more challenging landscape that increased competition creates for businesses in a global marketplace.